Articles

Most of the low-income population in Lao PDR, both in the rural and urban areas depends primarily on wood and charcoal for their cooking and heating needs. The Renewable Energy Development Strategy in Lao PDR 2011 report indicates that cooking fuel accounts for 70% of the nation’s overall energy consumption. This high dependence on biomass resources degrades local environments; demands considerable time in fuel collection, is costly and creates indoor air pollution that causes the premature death of 2,600 people each year (according to the WHO). Further, the burning of coal and wood adds considerably to green house gas emissions.

Recognising these challenges, initiatives to promote improved cook stoves known as the Tao Payat Stove or the “Savings” Stove have taken place since 1997 by FAO, USAID, and few local NGOs. Today, five producers in Vientiane, Savannakhet and Champasak producing ICS of a varying quality have benefitted from earlier initiatives.

Oxfam NOVIB, SNV and WWF in 2010 performed an in-depth research on the cook stove sector and its value chain. The study indicated challenges in supply and demand affecting the sustainability of the value chain. At production level, challenges related to low productivity, low-quality of improved cook stoves, too high production costs and lack of incentives and/or drivers as well as proper mechanism to hold the producers accountable. Policy and institutional framework such as national quality standard for stoves and an accredited testing agency are yet to be in place. The study indicated the importance of organisation among ICS producers to develop internal monitoring to maintain sustainability and quality of the products, thus securing a long-term market niche and bargaining power. On the second level of the ICS chain, retailers are not well informed on varieties in quality between the improved and other cook stoves don’t know well the benefits of the ICS or are not equipped with the needed marketing skills for the promotion of the ICS. At the top of the chain, the consumers, in particular those away from production centres, are not well aware of the social and environmental benefits of ICS. Lastly, a multi-stakeholder dialogue structure between SME/cook stove producers and retailers, government, financiers, civil society is yet to be established to address further challenges and gaps of ICS chain in Laos and therefore ensuring sustained consumption and production system of the ICS.

Brief Description of the Action

The proposed Action follows a pilot phase, replicates the activities and lessons learned, up-scaled from 1 to 5 provinces. It uses recommendations and findings of a cook stoves value chain study. The study showed challenges at all levels of the supply chain. The proposed Action entails scaling up the ICS programme, providing a robust platform for replication and application of best practices. The pilot phase (2011-2012) is supported by Oxfam NOVIB, SNV Lao PDR and the Blue Moon Fund in partnership with Association for Rural Mobilisation and Improvement (ARMI/NORMAI) program already received positive support from Government, testing agencies, consumers/users, retailers and producers. Further, it is well noted that other stakeholders have expressed their interest to contribute and take part in this initiative. Oxfam NOVIB, SNV and ARMI/NORMAI will therefore extend the existing partnership in an ongoing effort to establish a sustainable market-based ICS sector including different stakeholders.

Objectives

The overall objective is to contribute towards poverty alleviation in Lao PDR through the development of a sustainable consumption and production chain of cleaner and fuel efficient Improved Cook Stoves (ICS) which will promote the efficient use of wood and charcoal and lower greenhouse gas emission.

The specific objectives are:

By the end of 2016, the sustainable production and consumption of cleaner and fuel efficient Improved Cook Stoves (ICS) is well established, 50% of the market share of cook stoves will be dominated by the ICS.

The target consumers in the five target provinces will have better awareness and access to purchase the ICS, as an affordable and high quality alternative to the traditional cook stoves.

Target groups

Producer SMEs: 15 improved cook stove producers

Retailer SMEs:150 cook stove retailers

The Lao Women’s Union, as consumer network that will provide awareness campaigns at village level to end users. 4.Testing Agencies: The Provincial Department of Science and Technology (DST)

Final beneficiaries

Consumers/users: 100,000 women purchasing the ICS that save time and money and reduce indoor air pollution, reaching out to a total of 600,000 low income persons.

Estimated results

By the end of 2016:

15 small and medium enterprise (SME) stove producers are able to sustainably produce 100,000 high quality ICS.

150 SME retailers, the majority in the five target provinces, successfully promote the ICS and have improved their marketing strategies.

Lao Women’s Union in the five target provinces fully assumes its role as an effective “Promotional Partner”.